Sub:Application for grant of Electricity
Trading Licence

With reference to Section 14 of
“Electricity Act, 2003”, we hereby submit our application for grant of Inter
State Electricity Trading Licence for the purpose of power trading on All India
basis.

In this connection, we would like
to inform you that our Company, DLF Power Ltd is incorporated under the
Companies Act, 1956 vide No: 55-32006 dated 8th June, 1968.The main object of the Company includes
inter-alia, generation, transmission, distribution and supply of electrical
power.We are already in the business
of electrical power as an Independent Power Producer (IPP).Based on the government guidelines and
opening up of the electrical power business for private sector in the last
decade, we have set up power plants in the state of Assam and Jharkhand.In Assam, we have set up two Combined Cycle
Natural Gas based power plants and are supplying power to Assam State
Electricity Board (ASEB) as per the Power Purchase Agreement signed with
them.In Jharkhand, we have set up Coal
based power plants and are supplying the electrical power to M/s Coal India Ltd
(Government of India Undertaking) as per the Power Purchase Agreement signed
with them.

Technical Strengths:-

DLF Power Ltd has two divisions viz.
(1) EPC Division and (2) Power Generation Division.

The EPC Division of the Company
has experienced professionals in the field of electrical power with full
capability in the field of design, engineering, procurement, erection &
commissioning, project management, financial management such that power plants
of all capacities can be set up from concept to commissioning. The EPC Division
has set up power plants of various capacities ranging from 3 MW to 85 MW on
total turnkey basis for various customers in India.

The Power Generation Division is
one of the pioneers in the private sector generation in India by setting up of
power plants in the state of Assam and Jharkhand, as explained above and are
operating the plants and supplying power to ASEB and Coal India Ltd for the
last about 6 to 7 years.

As is evident from the above, our
Company is dedicated to business in the area of electrical power and hence
consequent to the Electricity Act, 2003 we find it a logical business extension
to get into the power trading business.

2

Financial Strength:-

DLF Power Ltd belongs to DLF
Group of Companies and a 100% subsidiary of M/s DLF Universal Ltd who are the
biggest real estate and construction company in India.The assets base of DLF Group of Companies is
very large and due to this large asset base, raising of funds from reputed
Financial Institutions and Banks is achieved easily.

For the above stated projects set
up by DLF Power Ltd on B.O.O. basis in the state of Assam and Jharkhand, a total
investment of Rs.347 crores has been done and the means of finance for the
above projects are indicated below:-

a)Equity:
Rs.83.32 crores

b)Loan:
Rs.148.00 crores

c)Foreign Currency Loan:
Rs.51.87 crores

d)Lease Finance:
Rs.65.00 crores

The net worth of DLF Power Ltd
for the past five years is mentioned in the Form I enclosed and the same is
reproduced for ready reference.

a)Year 1998-1999Rs.10,985.02
lacs

b)Year 1999-2000Rs.12,843.22
lacs

c)Year 2000-2001Rs.13,035.08
lacs

d)Year 2001-2002Rs.13,814.71
lacs

e)Year 2002-2003Rs.13,731.66
lacs

Our Company maintains Accounting
records and prepares annual financial statements in conformity with Indian
Electricity Act.We are enclosing with
this letter annual financial statements for the last 5 years.

In case if any further
information is required, we shall be pleased to furnish the same on hearing
from you.

Applicant or its
promoter

d)Details of Income Tax

Registration:Enclosed

Details
of Financial Data of Applicant

10.Net worth (in equivalent Indian Rupees-conversion to be
done at the rate of exchange prevailing at the end of each year) for immediate past
5 (five) financial years. (Specify financial year as applicable)

(DD/MM/YY) to (DD/MM/YY)

Indian
Rs. In lac

a) Year 1( 4/98) to (3/99)10985.02

b) Year 2(4/99) to (3/00)12843.22

c) Year 3(4/00) to (3/01)13035.08

d) Year 4(4/01) to (3/02)13814.71

e) Year 5(4/02 ) to (3/03 )13731.66

f)Copies of Annual Reports or certified audited results to be

enclosed in support of above.Enclosed

11.Annual Turnover (in equivalent Indian Rupees - conversion
to be done at the rate of exchange prevailing at the end of each year) for
immediate past 5 (five) financial years. (Specify financial year as applicable)

(DD/MM/YY) to (DD/MM/YY)

Indian
Rs. In lac

a) Year 1(4/98) to (3/99)4920.33

b) Year 2(4/99) to (3/00)7539.22

c) Year 3(4/00) to (3/01)10032.91

d) Year 4(4/01) to (3/02)11371.47

e) Year 5(4/02) to (3/03)11175.11

f)Copies of Annual Reports or certified audited results to be

enclosed in support of aboveEnclosed.

12.List of documents enclosed in support of Sl.Nos. (10) and
(11) above:

Name of the documents

a)Copy of Annual report for the years

1998-999/1999-00/2000-01

2001-02/2002-03Enclosed

13.a)Whether applicant
himself shall be Yes

financing
the proposed trading fully

on
its own balance sheet

b)If, Yes, proposed equity from the

ApplicantNot
Applicable since it is a existing company. Investment required, if any, will be
arranged from internal resources.

(Applicant
is required to enclose proof of their Organizational & Managerial
Capability, in terms of these Regulations, in form of proposed organizational
structure & curriculum vitae of various Executives, proposed office and
communication facilities etc.)

17Approach & Methodology:LATER

(Applicant
is required to describe Approach & Methodology for establishment of the
Trading arrangements as proposed by the applicant).